Linkages of Financial Efficacy, Demographics, Risks Preference and Consumption Behavior in Malaysia

Abstract

Financial literacy is one of the sustainable development goals of huge concern of governments. Governments explore solutions addressing policies to improve financial literacy. Nevertheless, financial management has such a broad scope and is not just limited to knowledge. As human nature, individuals are born with different confidence levels that include various financial abilities. This study aims to investigate the household-financial efficacy through the application of psychometric instruments, risk preference, and demographic characteristics toward consumption decision behavior. The research is based on a survey 479 households in the peninsular Malaysia, and utilizes the structural equation model, cluster proportional and systematic random sampling, and two measurements -composite reliability and average variance extracted. Results show that households' financial efficacy is one of the critical factors that explain the households' consumption decision behavior. Also, risk preference, gender and area location (rural or urban) of the household determined the consumption decision behavior of the household. The effectiveness of consumption decision is not only determined by financial literacy, but also financial efficacy. The implications of this paper may help to design policies in narrowing the broad gap between the rural and urban level of financial efficacy. The government needs to take appropriate actions to fix it.

The influence of Slovak consumer lifestyle on purchasing behaviour in the consumption of organic food

“…Socio-demographic factors (in this area especially age, gender and income) are one of several predictors of consumer shopping behaviour that can be used to analyse a specific market (Ochieng, 2006; Al-Kandari and Vidal, 2007; Ula and Fortis, 2010; Hacıhasanoğlu et al. , 2011; Gunter and Furnham, 2014; Singh and Verma, 2017; Kunc and Krizan, 2018; Kusairi et al. , 2020; Sen et al.…”

Socio-Psychological Factors as the Motivator of Symbolic Consumption and Brand Consciousness

“…Attitudes play an important role in maintaining and protecting self-esteem. Self-esteem is one of the factors that affect consumption behaviour of individuals (Zahra & Anoraga, 2021) and its motivation functions to stimulate and deter individuals to consume particular products, brands, and clothing styles (Banister & Hogg, 2004). Marketing literature suggests that the need to sustain or grow self-esteem is related to purchases in esteem-enhancing product categories such as those that improve physical image, and to the degree to which people enjoy their material wealth (Silvera, Lavack & Kropp, 2008).…”

Faktor Yang Mempengaruhi Perilaku Konsumtif Pada Generasi Z

“…Apabila pendapatan seseorang mengalami kenaikkan maka bertambah pula keinginan seseorang untuk membelanjakan uang mereka, perilaku tersebut mencerminkan adanya indikasi sikap konsumtif (Zahra & Anoraga, 2021). Hasil dari penelitian yang telah dilakukan Kusairi et al (2020) adalah adanya pengaruh positif yang signifikan antara variabel demografi terhadap perilaku konsumtif. Hasil yang sama juga terdapat dalam penelitian Kumar & Kumar (2019) yang menyatakan demografi memiliki pengaruh mengarah kearah positif dan signifikan terhadap perilaku berkonsumtif.…”

“…Tingginya pendapatan yang dimiliki seseorang, maka semakin tinggi orang tersebut dalam berperilaku konsumtif. Pernyataan disamping sejalan dengan penelitian yang dilakukan oleh Kusairi et al (2020) dan Kumar & Kumar (2019). Pada indikator jenis kelamin, perempuan lebih sering berperilaku konsumtif dari pada lakilaki.…”